C HAPTER 18

Introduction to Systems
Development and Systems
Analysis

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 INTRODUCTION
• Questions to be addressed in this chapter
include:
– What are the phases in the systems development
life cycle?
– Who are the individuals involved in systems
development?
– What techniques are used to plan the development
of a system?
– How do you determine whether a particular system
is feasible?
– How do people respond to systems changes, and
how can dysfunctional behavior be minimized?
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 INTRODUCTION

• As the environment, technology, and

competition change, an information
system must continually undergo changes
• These changes range from minor
adjustments to major overhauls.
• Occasionally the old system is scrapped
and replaced.

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 INTRODUCTION
• Companies change their systems for a variety of
reasons:
– To respond to changes in user needs or business needs
– To take advantage of or respond to technology changes
– To accommodate improvements in their business
process
– To gain a competitive advantage and/or lower costs
– To increase productivity
– To accommodate growth
– To accommodate downsizing or distribute decision
making
– To replace a system that is aged and unstable

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 INTRODUCTION
• Developing quality, error-free software is difficult,
expensive, and time-consuming.
• Projects tend to deliver less than expected and consume
more time and money.
• A KPMG survey found that 35% of all major information
systems projects were classified as runaways—
hopelessly incomplete and over budget.
– Major cause of runaways: Skimping on systems development
processes.
• Omitting basic systems development steps becomes
tempting but may lead to disaster as developers create
well-structured systems that fail to meet user needs or
solve business problems.

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 INTRODUCTION

• This chapter discusses five topics:

– Systems development life cycle
– Planning activities during the systems
development life cycle
– Feasibility analysis
– Behavioral aspects of change
– Systems analysis

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• Whether systems changes are major or

minor, most companies go through a
systems development life cycle.
• In this section, we discuss the steps in the
cycle and the people involved.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• The five stages in the systems

development life cycle are:
– Systems analysis
– Conceptual Design
– Physical Design
– Implementation and Conversion
– Operation and Maintenance

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• The five stages in the systems

development life cycle are:
– Systems analysis
– Conceptual Design
– Physical Design
– Implementation and Conversion
– Operation and Maintenance

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• As organizations grow and change, they may

need more or better information.
• Systems analysis is the first step. It includes:
– Initial investigation
 Involves gathering the information needed
to buy or develop a new system and
determining whether it is a priority.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• As organizations grow and change, they may

need more or better information.
• Systems analysis is the first step. It includes:
– Initial investigation
– Systems survey
 If the system is a priority, survey the
existing system to define the nature and
scope of the project and identify the
strengths and weaknesses of the system.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• As organizations grow and change, they may

need more or better information.
• Systems analysis is the first step. It includes:
– Initial investigation
– Systems survey
– Feasibility study
 Involves an in-depth study of the proposed
system to determine whether it’s feasible.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• As organizations grow and change, they may

need more or better information.
• Systems analysis is the first step. It includes:
– Initial investigation
– Systems survey
– Feasibility study
– Determination of information needs and system
requirements
 Involves finding out and documenting what
users and management need.
 This is the most important aspect of
systems analysis.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• As organizations grow and change, they may

need more or better information.
• Systems analysis is the first step. It includes:
– Initial investigation
– Systems survey Involves preparation of a report
– Feasibility study summarizing the systems analysis work.
– Determination of This report isneeds
 information submitted
and to the information
system
requirements systems steering committee.
– Delivery of systems requirements

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• The five stages in the systems

development life cycle are:
– Systems analysis
– Conceptual Design
– Physical Design
– Implementation and Conversion
– Operation and Maintenance

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• In the conceptual design phase, the company

decides how to meet user needs.
• Tasks in this phase include:
– Identify and evaluate design alternatives
 Possibilities include:
 Buying software
 Developing in-house
 Outsourcing

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• In the conceptual design phase, the company

decides how to meet user needs.
• Tasks in this phase include:
– Identify and evaluate design alternatives
– Develop design specifications
 Involves writing up details of what the system is to
accomplish and how it is to be controlled and
developed.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• In the conceptual design phase, the company

decides how to meet user needs.
• Tasks in this phase include:
– Identify and evaluate design alternatives
– Develop design specifications
– Deliver conceptual design requirements
 These requirements will be forwarded to the
information systems steering committee.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• The five stages in the systems

development life cycle are:
– Systems analysis
– Conceptual Design
– Physical Design
– Implementation and Conversion
– Operation and Maintenance

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• In the physical design phase, the broad, user-

oriented requirements of the conceptual design
are translated into detailed specifications that can
be used by programmers to code the programs.
• Tasks include:
– Design outputs, database, and inputs
– Develop programs
– Develop procedures
– Design controls
– Deliver developed system
• Goes to information systems steering committee

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• The five stages in the systems

development life cycle are:
– Systems analysis
– Conceptual Design
– Physical Design
– Implementation and Conversion
– Operation and Maintenance

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• This is the capstone phase during which everything comes

together.
• Tasks include:
– Develop an implementation and conversion plan
• Needed because of the complexity and importance of this phase
– Install any new hardware and software
– Train personnel
• New employees may need to be hired and trained or existing
employees relocated.
– Test the system and make any needed modifications.
– Complete the documentation.
– Convert from the old to the new system.
– Deliver operational system.
• Send the final report to the IS steering committee.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• The five stages in the systems

development life cycle are:
– Systems analysis
– Conceptual Design
– Physical Design
– Implementation and Conversion
– Operation and Maintenance

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• Once the system is up and running, operations

and monitoring continue.
• Tasks include:
– Fine-tune and do post-implementation review.
– Operate the system.
– Periodically review and modify the system.
– Do ongoing maintenance.
– Deliver improved system.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

• Eventually a major modification or system

replacement is necessary, and the systems
development life cycle (SDLC) will start over.
• In addition to the preceding five phases, three
activities are performed throughout the life cycle:
– Planning
– Managing behavioral reactions to change
– Assessing ongoing feasibility
• These three activities will be discussed in this
chapter.
• Additionally, the first phase in the SDLC, systems
analysis, will be discussed in more detail.
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 THE PLAYERS

• Many people are involved in developing and

successfully implementing an AIS, including:
• Top management
• Accountants
• The information systems steering committee
• The project development team
• Systems analysts
• Computer programmers
• External players

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 THE PLAYERS

• Many people are involved in developing and

successfully implement an AIS, including:
• Top management
• Accountants
• The information systems steering committee
• The project development team
• Systems analysts
• Computer programmers
• External players

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 THE PLAYERS
• Top management’s role in systems development
is to:
– Provide support and encouragement and a clear
signal that user involvement is important.
– Help align the systems with corporate strategies.
– Establish system goals and objectives.
– Review IS department performance and leadership.
– Establish policies for project selection and
organizational structure.
– Participate in important systems decisions.

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 THE PLAYERS
• User management needs to:
– Determine information requirements for departmental
projects.
– Assist systems analysts with project cost-benefit
estimates.
– Assign key staff members to development projects.
– Allocate funds.

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 THE PLAYERS

• Many people are involved in developing and

successfully implement an AIS, including:
• Top management
• Accountants
• The information systems steering committee
• The project development team
• Systems analysts
• Computer programmers
• External players

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 THE PLAYERS
• Accountants also play an important role in
systems development:
– As AIS users, they must determine their information needs
and systems requirements and communicate them to
system developers.
– As members of project development teams or steering
committees, they help management in the development
process.
– They are also active in:
• Designing system controls and monitoring and testing these
controls.
• Ensuring the system is easy to audit.
– Controls and “auditability” need to be built in early to
minimize costs and inefficiencies later.
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 THE PLAYERS

• Many people are involved in developing and

successfully implement an AIS, including:
• Top management
• Accountants
• The information systems steering committee
• The project development team
• Systems analysts
• Computer programmers
• External players

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 32 of 151
 THE PLAYERS
• The information systems steering committee is
an executive-level committee whose duty is to
plan and oversee the IS function.
– Consists of high level management, such as:
• Controller
• IS Manager
• User department managers
– Sets policies to govern the AIS and assure top-
management participation, guidance, and control.
– Attempts to encourage goal congruence and reduce
goal conflict.

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 THE PLAYERS

• Many people are involved in developing and

successfully implement an AIS, including:
• Top management
• Accountants
• The information systems steering committee
• The project development team
• Systems analysts
• Computer programmers
• External players

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 34 of 151
 THE PLAYERS
• The project development team includes systems specialists,
managers, accountants, auditors, and users whose
responsibility is to guide development
• Their job:
– Plan each project.
– Monitor to ensure timely and cost-effective completion.
– Ensure the human element is considered.
– Communicate project status to top management and steering
committee.
– Communicate and meet with users to:
• Consider ideas
• Discuss progress
• Eliminate surprises
– The team approach produces more effective results and better
user acceptance.
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 35 of 151
 THE PLAYERS

• Many people are involved in developing and

successfully implement an AIS, including:
• Top management
• Accountants
• The information systems steering committee
• The project development team
• Systems analysts
• Computer programmers
• External players

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 36 of 151
 THE PLAYERS

• Systems analysts study existing systems,

design new ones, and prepare
specifications that are used by
programmers.
– They interact with technical personnel and
users to bridge the gap.
– They are responsible for ensuring the system
meets user needs.

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 THE PLAYERS

• Many people are involved in developing and

successfully implement an AIS, including:
• Top management
• Accountants
• The information systems steering committee
• The project development team
• Systems analysts
• Computer programmers
• External players

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 38 of 151
 THE PLAYERS

• Computer programmers write the

computer programs, using the specs
developed by the systems analysts.
• They also modify and maintaining existing
programs.

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 THE PLAYERS

• Many people are involved in developing and

successfully implement an AIS, including:
• Top management
• Accountants
• The information systems steering committee
• The project development team
• Systems analysts
• Computer programmers
• External players

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 THE PLAYERS

• External players include:

– Customers
– Vendors
– Auditors
– Governmental entities
• Their needs must also be met in systems
development.

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 PLANNING SYSTEMS DEVELOPMENT

• Several activities must be performed at various

times throughout the SDLC.
• One of these activities is planning.
• The organization should have plans for:
– The long range
– Each systems development project
– Each phase of each systems development project
• We’ll discuss these plans and a number of
techniques to develop them.

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 PLANNING SYSTEMS DEVELOPMENT

• We’ve all experienced the disasters that occur when we

fail to plan.
• Suppose you bought a personal computer on impulse
without thinking about what you wanted to do with it.
• When you got it home, you realized it wasn’t compatible
with your existing printer and scanner.
• Furthermore, it wasn’t equipped for broadband internet
access and you had been hoping to switch to broadband.
• By the time you spend the money and buy the parts to
equip the computer to do what you want it to do, you find
that you could have bought a leading-edge computer for
less money.

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 PLANNING SYSTEMS DEVELOPMENT

• Systems development planning is an important

step for the following key reasons:
– Consistency with the organization’s strategic plan.
– Efficiency achieved through coordination of the
subsystems.
– Cutting edge technology and techniques.
– Lower costs due to lack of duplication, wasted effort,
time overruns, and cost overruns.
– Adaptability for future changes.

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 PLANNING SYSTEMS DEVELOPMENT

• When a system is poorly planned, a company

must often return to a prior phase and correct
errors and design flaws.
• These returns are costly and result in delays,
frustration, and low morale.

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 PLANNING SYSTEMS DEVELOPMENT

• Two types of systems development plans

are needed:
- Individual project plans developed by the
project teams.
- A master plan developed by the IS steering
committee.

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 PLANNING SYSTEMS DEVELOPMENT

• Two types of systems development plans

are needed:
- Individual project plans developed by the
project teams.
- A master plan developed by the IS steering
committee.

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 PLANNING SYSTEMS DEVELOPMENT

• Individual project plans contain:

– A cost-benefit analysis.
– Developmental and operational requirements,
including:
• Human resources
• Hardware
• Software
• Financial resources
– A schedule of activities to develop and operate the
new application

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 PLANNING SYSTEMS DEVELOPMENT

• Two types of systems development plans

are needed:
- Individual project plans developed by the
project teams.
- A master plan developed by the IS steering
committee.

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 PLANNING SYSTEMS DEVELOPMENT

• A master plan specifies:

– What the system will consist of
– How it will be developed
– Who will develop it
– How needed resources will be acquired
– Where the AIS is headed
• It also provides:
– Status of projects in process
– Prioritization of planned projects and criteria for
establishing priorities
– Timetables for development

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 PLANNING SYSTEMS DEVELOPMENT

• Projects with highest priority are first to be

developed.
– These decisions are made by top management.
• Planning horizon:
– About a 3-year horizon
– With updates at least 2-3 times/year—even more
frequently in some companies.
• The CIO should determine:
– How soon technologies will be in wide use
– Whether the company should adopt late or early
– What business opportunities might arise from new
technologies
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 PLANNING SYSTEMS DEVELOPMENT

• Planning Techniques
– Two techniques for scheduling and
monitoring systems development
activities are:
• Program Evaluation and Review Technique
(PERT)
• Gantt Charts

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 PLANNING SYSTEMS DEVELOPMENT

• Planning Techniques
– Two techniques for scheduling and
monitor systems development activities
are:
• Program Evaluation and Review
Technique (PERT)
• Gantt Charts

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 PLANNING SYSTEMS DEVELOPMENT

• A PERT diagram requires that all activities

in a project be identified along with the
activities that precede and follow them.
• These activities are used to draw a PERT
diagram, which consists of a network of:
– Arrows—representing activities that require
time and resources.
– Nodes—representing completion and initiation
of activities.

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 PLANNING SYSTEMS DEVELOPMENT

• The critical path in a PERT diagram is the

path requiring the greatest amount of time.
• If an activity on the critical path is delayed,
the whole project is delayed.
• Resources may be shifted to the critical
path to reduce the delay.

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 • SAMPLE PERT CHART
– For building and selling a birdhouse.
– Each block contains a task and a time estimate (may include
best time, worst time, and average time)
– May indicate who will be responsible for the task.

Buy Wood Build

& Nails Base
(1) (2)
(Bill) (Bill)

Design Nail Paint &

Sell
Birdhouse Together Decorate
(2)
(2) (2) (3)
(Sara)
(Bill) (Bill) (Sara)

Buy Build
Paint Roof
(1) (1)
(Sara) (Bill)

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 PLANNING SYSTEMS DEVELOPMENT

• Planning Techniques
– Two techniques for scheduling and
monitor systems development activities
are:
• Program Evaluation and Review Technique
(PERT)
• Gantt Charts

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 PLANNING SYSTEMS DEVELOPMENT

• A Gantt chart is a bar chart with project activities

on the left and time across the top.
• For each activity, a bar of expected time is
drawn.
• As activities are completed, the bar is filled in.
• The Gantt chart makes it easy to eyeball the
chart and understand the current status of a
project.
• But the chart does not show the relationship
between activities like the PERT chart does.
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 Complete
Testing
In Development

Milestone

Period
1 2 3 4 5 6 7 8 9 10
Design birdhouse
Buy wood & nails
Buy paint
Build roof
Build base
Nail together
Paint & decorate
Sell

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 FEASIBILITY ANALYSIS
• During the systems analysis phase, a feasibility
study (aka, a business case) is prepared and is
updated during the remaining steps in the SDLC.
• The extent of the feasibility study depends on
the size and nature of the system.
• Feasibility team should include:
– Management
– Accountants skilled in controls and auditing
– Systems personnel
– Users

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 FEASIBILITY ANALYSIS

• The feasibility study and its updates are

used by the steering committee as the
project proceeds to decide whether to:
– Terminate the project
– Proceed
– Proceed if specific problems are resolved

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 FEASIBILITY ANALYSIS
• Five aspects need to be considered during a
feasibility study:
– Technical feasibility
• Is the technology there to do it?
– Operational feasibility
• Do we have people who can do it, and will it get used?
– Legal feasibility
• Does it comply with legal, regulatory, and contractual
obligations?
– Scheduling feasibility
• Can it be done in time?
– Economic feasibility
• Will the benefits exceed the costs?
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 FEASIBILITY ANALYSIS

• Calculating Economic Feasibility Costs and

Benefits
– Economic feasibility is probably the most important
and frequently analyzed aspect.
– This examination requires a careful investigation of
costs and benefits.
– It typically uses a capital budgeting model that
considers:
• Cost savings and other benefits
• Initial outlay costs
• Operating costs
• Other costs
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 FEASIBILITY ANALYSIS

• When possible, benefits and costs should

be estimated and included even if they are
not easily quantifiable.
• If some costs and benefits cannot be
accurately estimated, they should at least
be listed, along with the likelihood of their
occurrence and their expected impact.

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 FEASIBILITY ANALYSIS

• Benefits might include:

– Cost savings.
– Improved customer service, productivity,
decision making, or data processing.
– Better management control.
– Increased job satisfaction and employee
morale.

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 FEASIBILITY ANALYSIS
• Costs might include:
– Equipment costs
• Initial outlay plus ongoing operating costs
– Software costs
• Costs of acquiring, maintaining, supporting, and operating
– Human resource costs
• Salaries, as well as costs of hiring, training, and relocating staff
– Site preparation costs
– Installation and conversion costs
– Supplies
– Overhead
– Financial charges
• The primary operating cost is maintaining the system.
• Makes up 65-75% of the organization’s system efforts

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 FEASIBILITY ANALYSIS

• Capital Budgeting
– Most organizations use a capital budgeting
return on investment technique to evaluate
the economic merits of different system
alternatives.
– There are three commonly used techniques
• Payback period
• Calculates the number of years before the new savings
from the project equal the initial cost of the investment.
• Select projects with shorter payback periods.

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 FEASIBILITY ANALYSIS

• Capital Budgeting
– Most organizations use a capital budgeting
return on investment technique to evaluate
the economic merits of different system
alternatives.
– There are three commonly used techniques
• Payback period
• Net present value (NPV)
• Calculates and sums the discounted future cash flows of
the costs and benefits.
• Select projects with higher positive NPV.

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 FEASIBILITY ANALYSIS

• Capital Budgeting
– Most organizations use a capital budgeting
return on investment technique to evaluate
the economic merits of different system
alternatives.
– There are three
• Calculates commonly
the effective used
interest rate techniques
that would result in
• Payback periodvalue of zero for the project.
a net present
• •NetSelect projects
present valuewith higher IRRs.
(NPV)
• Internal rate of return (IRR)

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 BEHAVIORAL ASPECTS OF CHANGE

• The best system will fail without the

support of the people it serves.
• So the behavioral aspects of change are
crucial.
• You need to be aware of and sensitive to
the types of behavioral problems that can
result from change.

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 BEHAVIORAL ASPECTS OF CHANGE

• Why Behavioral Problems Occur

– Employees will tend to view change as good if
they believe it will affect them positively and
vice versa.

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 BEHAVIORAL ASPECTS OF CHANGE

• To minimize adverse behavioral reactions,

it helps to understand why resistance
occurs:
– Personal characteristics and background
• Employees are more likely to accept change if they are:
– Young;
– Highly educated; or
– Comfortable with technology.

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 BEHAVIORAL ASPECTS OF CHANGE

• To minimize adverse behavioral reactions,

it helps to understand why resistance
occurs:
– Personal characteristics and background
– Manner in which change is introduced
• The rationale used to sell the system may need to vary
with the job responsibilities of the employees involved.

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 BEHAVIORAL ASPECTS OF CHANGE

• To minimize adverse behavioral reactions,

it helps to understand why resistance
occurs:
– Personal characteristics and background
– Manner in which change is introduced
– Experience with prior changes
• Fool me once, shame on me . . .
• Let’s see if I even give you a
second chance.

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 BEHAVIORAL ASPECTS OF CHANGE

• To minimize adverse behavioral reactions,

it helps to understand why resistance
occurs:
– Personal characteristics and background
– Manner in which change is introduced
– Experience with prior changes
– Top management support

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 BEHAVIORAL ASPECTS OF CHANGE

• To minimize adverse behavioral reactions,

it helps to understand why resistance
occurs:
– Personal characteristics and background
– Manner in which change is introduced
– Experience with prior changes
– Top management support
– Communication

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 BEHAVIORAL ASPECTS OF CHANGE

• To minimize adverse behavioral reactions,

it helps to understand why resistance
occurs:
– Personal characteristics and background
– Manner in which change is introduced
– Experience with prior changes
• Employees may be too
– Top management supportemotionally attached to their
– Communication duties, i.e., “sacred cows.”
– Biases and natural resistance to change

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 BEHAVIORAL ASPECTS OF CHANGE

• To minimize adverse behavioral reactions,

it helps to understand why resistance
occurs:
– Personal characteristics and background
– Manner in which change is introduced
– Experience with prior changes
– Top management support
– Communication • Disturbances often create
– Biases and natural resistance to change
negative feelings.
– Disruptive nature of the change process

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 BEHAVIORAL ASPECTS OF CHANGE

• To minimize adverse behavioral reactions,

it helps to understand why resistance
occurs:
– Personal characteristics and background
– Manner in which change is introduced
– Experience with prior changes
– Top management
• May include
support
fear of:
– Communication
– The unknown
– Biases and –natural
Failure resistance to change
– Disruptive nature of the change process
– Technology
– Fear – Losing respect or status
– Losing their jobs

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 BEHAVIORAL ASPECTS OF CHANGE

• How People Resist AIS Changes

– Resistance to change often takes one of
three forms:
• Aggression
• Behavior intended to destroy, cripple, or weaken the
system’s effectiveness.
• Examples: Increased error rates, disruptions, or
deliberate sabotage.

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 BEHAVIORAL ASPECTS OF CHANGE

• How People Resist AIS Changes

– Resistance to change often takes one of
three forms:
• Aggression
• Projection
• Blaming the new system for any and every unpleasant
occurrence, i.e., the system becomes a scapegoat.
• To preserve the integrity of the system, these
criticisms must be controlled or answered.

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 BEHAVIORAL ASPECTS OF CHANGE

• How People Resist AIS Changes

– Resistance to change often takes one of
three forms:
• Aggression
• Projection
• Avoidance
• “If I don’t use this thing, maybe it will go away!”

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 FEASIBILITY ANALYSIS

• Reactions to change can be improved by

observing the following guidelines:
– Meet user’s needs with respect to the form,
content, and volume of system output.
– Keep communication lines open. Managers
and users should be fully informed about:
• What changes are being made
• Why
• How it will benefit them
• Who to contact with questions
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 FEASIBILITY ANALYSIS

– Maintain a safe and open atmosphere.

• If employees become hostile, it’s an uphill battle
you probably won’t win.
– Obtain management support.
– Allay fears.
• To the extent possible, reassure employees that
no major job losses or responsibility shifts will
occur.
• If employees are terminated, severance pay and
outplacement services should be provided.

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 FEASIBILITY ANALYSIS

– Solicit user participation.

• It is ego enhancing, challenging, and intrinsically
satisfying.
• Users who participate will be more committed to
using the system.
– Provide honest feedback.
• Explain which suggestions are and are not being
used and why.
– Make sure users understand the system.
• Don’t underestimate training needs.

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 FEASIBILITY ANALYSIS
– Humanize the system.
• Employees shouldn’t feel the computer is
controlling them or has usurped their positions.
– Describe new challenges and opportunities.
• The system can provide greater job satisfaction
and increased opportunities.
– Reexamine performance evaluation.
• Are performance standards and criteria realistic in
light of the change?
– Test the system’s integrity.
• It’ important to minimize bad impressions

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 FEASIBILITY ANALYSIS

– Avoid emotionalism.
• Emotional issues should be allowed to cool, handled in a
non-confrontational manner, or sidestepped.
– Present the system in the proper context.
• Address the concerns of the people to whom you’re
speaking, not the concerns of management or developers.
– Control the user’s expectations
• Don’t oversell, and be realistic.
– Keep the system simple
• Avoid complex systems that cause radical changes.

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 FEASIBILITY ANALYSIS

• Ignoring the preceding steps can leave to

behavior issues that are difficult or
impossible to reverse.

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 SYSTEMS ANALYSIS

• When a new or improved system is

needed, a written request for systems
development is prepared. That request
describes:
– The current system’s problems
– The reasons for the proposed changes
– The goals and objectives of a proposed
system
– The anticipated benefits and costs

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 SYSTEMS ANALYSIS

• The project development team will

conduct the systems analysis in five steps:
– Initial investigation
– Systems survey
– Feasibility study
– Information needs and systems requirements
– Systems analysis report

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 SYSTEMS ANALYSIS

• The project development team will

conduct the systems analysis in five steps
– Initial investigation
– Systems survey
– Feasibility study
– Information needs and systems requirements
– Systems analysis report

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 SYSTEMS ANALYSIS

• The initial investigation is conducted to:

– Gain a clear picture of the problem or
need.
• Sometimes what is thought to be the cause of the
problem is not the real source.

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 SYSTEMS ANALYSIS

• The initial investigation is conducted to:

– Gain a clear picture of the problem or need.
– Determine the viability of the project and
expected costs and payoffs.

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 •
SYSTEMS ANALYSIS
A new AIS is useful when problems are a result of:
– Lack of information
– Inaccessibility of data
• The initial investigation is conducted to:
– Inefficient data processing
– Gain a new
• A clear
AISpicture of theproblems
will not answer problem or as:
such need.
– A manager who has too many subordinates
– Determine the viability of the project and
– A manager who lacks organizational skills
expected costs
– Failure and payoffs.
to enforce existing problems
– Evaluate the scope and nature of the new
AIS.

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 SYSTEMS ANALYSIS

• The initial investigation is conducted to:

– Gain a clear picture of the problem or need.
– Determine the viability of the project and
expected costs and• Either:
payoffs.
– Initiate the project as proposed.
– Evaluate the scope and nature
– Modify it. of the new
AIS. – Abandon it.

– Recommend whether to proceed.

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 SYSTEMS ANALYSIS

• If the project is approved:

– A proposal to conduct systems analysis is
prepared.
– The project is assigned a priority and added to
the master plan.
– The development team begins a survey of the
existing AIS.
– The proposal will be modified as more
information becomes available.

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 SYSTEMS ANALYSIS

• The project development team will

conduct the systems analysis in five steps
– Initial investigation
– Systems survey
– Feasibility study
– Information needs and systems requirements
– Systems analysis report

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 SYSTEMS ANALYSIS
• A systems survey involves an extensive study of the current
AIS which could take weeks or months. Objectives are:
– Gain a thorough understanding of:
• Company operations, policies, and procedures
• Data and information flow
• AIS strengths and weaknesses
• Available hardware, software, and personnel
– Make preliminary assessments of current and future processing
needs, and determine extent and nature of needed changes.
– Develop working relationships with users and build support.
– Collect data that identify user needs, conduct a feasibility analysis,
and make recommendations to management.

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 SYSTEMS ANALYSIS

• Data can be gathered from:

– Employees.
– Documentation such as organization charts
and procedure manuals.
– External sources such as:
• Consultants
• Customers
• Suppliers
• Industry associations
• Government agencies
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 SYSTEMS ANALYSIS

• Four common methods of gathering data

are:
– Interviews
– Questionnaires
– Observation
– System Documentation

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 SYSTEMS ANALYSIS

• Four common methods of gathering data

are:
– Interviews
– Questionnaires
– Observation
– System Documentation

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 SYSTEMS ANALYSIS

• Advantages of interviews:
– Can answer “why” questions
– Can allow for follow-up and clarification
– Provides opportunity to build positive relationships
with interviewees and support for new system
• Disadvantages of interviews:
– Time-consuming
– Expensive
– Personal biases or self-interest may produce
inaccurate information

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 SYSTEMS ANALYSIS
• When you do interviews:
– Make an appointment.
– Explain the purpose ahead of time.
– Indicate the amount of time needed.
– Be on time.
– Be familiar with the interviewee’s responsibilities.
– Make notes on points to cover.
– Put the interviewee at ease and let him/her do the
talking.
– Pay attention to nonverbal cues.
– Take notes and augment them with impressions after
the interview.
– Request permission to tape critical interviews.

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 SYSTEMS ANALYSIS

• Four common methods of gathering data

are:
– Interviews
– Questionnaires
– Observation
– System Documentation

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 SYSTEMS ANALYSIS

• Questionnaires can be used when:

– The amount of information to be gathered is
small and well defined.
– The information is to be obtained from many
people or from those who are remotely
located.
– The information is intended to verify data from
other sources.

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 SYSTEMS ANALYSIS
• Advantages of questionnaires:
– Can be anonymous.
– Not time-consuming to complete.
– Inexpensive.
– Allows the subject time to think about responses.
• Disadvantages of questionnaires:
– Does not allow in-depth questions or answers.
– Does not allow follow-up or clarification.
– Does not build relationships.
– Difficult to develop.
– May be ignored or completed superficially.

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 SYSTEMS ANALYSIS

• Four common methods of gathering data

are:
– Interviews
– Questionnaires
– Observation
– System Documentation

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 SYSTEMS ANALYSIS

• Advantages of observations:
– Can verify how the system actually works
rather than how it should work.
– Results in greater understanding of systems.
• Disadvantages of observations:
– Time-consuming.
– Expensive.
– Difficult to interpret.
– People may alter behavior while being
observed.
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 SYSTEMS ANALYSIS

• When you do observations:

– Identify what is to be observed and estimate
the time required.
– Obtain permission.
– Explain what will be done and why.
– Don’t make value judgments.
– Take notes and document impressions ASAP.

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 SYSTEMS ANALYSIS

• Four common methods of gathering data

are:
– Interviews
– Questionnaires
– Observation
– System Documentation

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 SYSTEMS ANALYSIS
• Advantages of systems documentation:
– Describes how the system should work.
– Written form facilitates review and analysis.
• Disadvantages of systems documentation:
– Time consuming.
– May be elusive.
• When you examine systems documentation:
– Keep in mind that the system doesn’t always work as
it should per the documentation.
– If documentation is unavailable, it may be worthwhile
to develop it.

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 SYSTEMS ANALYSIS

• Once the data is gathered, document

findings and model the existing system.
– Documentation consists of:
• Questionnaire copies
• Interview notes
• Memos

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 SYSTEMS ANALYSIS

• Another form of documentation is a

system model:
– Physical models illustrate how a system
functions by describing:
• Flow of documents.
• Computer processes performed and the people
doing them.
• Equipment used.
• Any other physical elements.
– Logical models illustrate what is being done
regardless of how the flow is accomplished.
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 SYSTEMS ANALYSIS

• When documentation is complete, analyze

the existing system:
– Evaluate the AIS’s strengths and weaknesses
to develop ideas for designing and structuring
the new AIS.
• Try to retain strengths.
• Correct weaknesses.
– Sometimes, you need revolutionary, rather
than evolutionary change.
• Called re-engineering.

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 SYSTEMS ANALYSIS

• At the end of this phase, prepare systems

survey report:
– Outlines and documents the data gathered.
– Provides recommendations that result from
the systems survey.

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 SYSTEMS ANALYSIS

• The project development team will

conduct the systems analysis in five steps
– Initial investigation
– Systems survey
– Feasibility study
– Information needs and systems requirements
– Systems analysis report

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 SYSTEMS ANALYSIS

• After the systems survey, a more thorough

feasibility analysis is conducted.
• This analysis is updated regularly as the
project proceeds and costs and benefits
become clearer.

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 SYSTEMS ANALYSIS

• The project development team will

conduct the systems analysis in five steps
– Initial investigation
– Systems survey
– Feasibility study
– Information needs and systems
requirements
– Systems analysis report

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 SYSTEMS ANALYSIS
 Once a project clears the feasibility hurdle, the company
identifies the information needs of AIS users and
documents systems processes, including:
- Processes
• Describes what is to be done
and by whom.

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 SYSTEMS ANALYSIS
 Once a project clears the feasibility hurdle, the company
identifies the information needs of AIS users and
documents systems processes, including:
- Processes
• Describes name, size, format,
- Data elements
source, and significance of
necessary data elements.

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 SYSTEMS ANALYSIS
 Once a project clears the feasibility hurdle, the company
identifies the information needs of AIS users and
documents systems processes, including:
- Processes
- Data elements
- Data structure • A preliminary structure showing
how the data elements will be
organized into logical records.

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 SYSTEMS ANALYSIS
 Once a project clears the feasibility hurdle, the company
identifies the information needs of AIS users and
documents systems processes, including:
- Processes
- Data elements
- Data structure
- Outputs • Layouts of system outputs and
a description of their purpose,
frequency, and distribution.

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 SYSTEMS ANALYSIS
 Once a project clears the feasibility hurdle, the company
identifies the information needs of AIS users and
documents systems processes, including:
- Processes
- Data elements
- Data structure
- Outputs
- Inputs • A copy of system inputs and a
description of their contents,
source, and who is responsible
for them.

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 SYSTEMS ANALYSIS
 Once a project clears the feasibility hurdle, the company
identifies the information needs of AIS users and
documents systems processes, including:
- Processes
- Data elements
- Data structure
- Outputs
- Inputs • A description of deadlines,
- Constraints schedules, security requirements,
staffing limitations, and legal
requirements.

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 SYSTEMS ANALYSIS
 Once a project clears the feasibility hurdle, the company
identifies the information needs of AIS users and
documents systems processes, including:
- Processes
- Data elements
- Data structure
- Outputs
- Inputs
- Constraints
- Controls • Controls that are needed to
ensure accuracy and reliability.

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 SYSTEMS ANALYSIS
 Once a project clears the feasibility hurdle, the company
identifies the information needs of AIS users and
documents systems processes, including:
- Processes
- Data elements
- Data structure
- Outputs
- Inputs
- Documentation constraints
- Controls • Changes in staffing, job
- Reorganizations functions, etc., that would be
necessary.

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 SYSTEMS ANALYSIS

• Issues:
– There is much to be specified, even for a
simple AIS.
– It may be difficult to get employees to
accurately articulate their needs.
– Errors are best caught early, as the cost to
correct them increases significantly the farther
you are into the project.

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 SYSTEMS ANALYSIS

• Systems Objectives and Constraints

– Many entities take a systems approach to
determining information needs and systems
requirements.
– Problems and alternatives are viewed from
the standpoint of the entire organization—as
opposed to a single department.

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 SYSTEMS ANALYSIS

• Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness
• Able to help users make
decisions.

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 SYSTEMS ANALYSIS

• Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness
- Economy
• Benefits exceed costs.

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 SYSTEMS ANALYSIS

• Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness
- Economy
- Reliability
• Data is processed accurately
and reliably.

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 SYSTEMS ANALYSIS

• Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness
- Economy
- Reliability
- Availability
• You can access it when you
need it.

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 SYSTEMS ANALYSIS

• Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness
- Economy
- Reliability
- Availability
- Timeliness
• More critical information is
provided first.

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 SYSTEMS ANALYSIS

• Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness
- Economy
- Reliability
- Availability
- Timeliness
- Customer service
• Efficient and courteous.
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 SYSTEMS ANALYSIS

• Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness - Capacity
- Economy • Can handle peak periods.
- Reliability
- Availability
- Timeliness
- Customer service

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 SYSTEMS ANALYSIS

• Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness - Capacity
- Economy - Ease of use
- Reliability
- Availability
- Timeliness
- Customer service

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 SYSTEMS ANALYSIS

• Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness - Capacity
- Economy - Ease of use
- Reliability - Flexibility
- Availability • Can accommodate changes.

- Timeliness
- Customer service

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 SYSTEMS ANALYSIS

• Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness - Capacity
- Economy - Ease of use
- Reliability - Flexibility
- Availability - Tractability
- Timeliness • Easily understood.
• Facilitates problem solving and
- Customer service future development.

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 SYSTEMS ANALYSIS

• Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness - Capacity
- Economy - Ease of use
- Reliability - Flexibility
- Availability - Tractability
- Timeliness - Auditability
- Customer service

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 SYSTEMS ANALYSIS

• Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness - Capacity
- Economy - Ease of use
- Reliability - Flexibility
- Availability - Tractability
- Timeliness - Auditability
- Customer service - Security • Available only to
authorized users.

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 SYSTEMS ANALYSIS

• There are often trade-offs between objectives.

• Organizational constraints make it impossible to
develop all parts of an AIS simultaneously.
– You divide it into modules that are analyzed,
developed, and installed independently.
– When changes are made, only the affected modules
need to be changed.
– The modules should be properly integrated into a
workable system.

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 SYSTEMS ANALYSIS

• Success often depends on the project

team’s ability to cope with organizational
constraints, including:
– Requirements of governmental agencies.
– Managerial policies and guidelines.
– Lack of sufficient, qualified staff.
– Capabilities and attitudes of users.
– Available technology.
– Limited financial resources.
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 SYSTEMS ANALYSIS

• Strategies for Determining

Requirements:
– One or more of the following four strategies
are used to determine AIS requirements:
• Ask users what they need
• This is the simplest and fastest strategy.
• But many people don’t realize or understand their true
needs.
• It’s sometimes better to ask them what decisions they
make and what processes they are involved in.
• Users also need to think beyond their current
information needs.
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 SYSTEMS ANALYSIS

• Strategies for Determining

Requirements:
– One or more of the following four strategies
are used to determine AIS requirements:
• Ask users what they need
• Analyze existing systems
 Internal and external systems should be analyzed to
avoid reinventing the wheel.

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 SYSTEMS ANALYSIS

• Strategies for Determining

Requirements:
• Certain modules:
– One or –more
May not be used as intended
of the following four strategies
– May be augmented by manual tasks
are used to determine
– May AIS requirements:
be avoided altogether
• Ask
• users what theywhether
Helps determine need the system really needs to be
simply modified rather than replaced.
• Analyze existing systems
• Examine existing system use

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 SYSTEMS ANALYSIS

• Strategies for Determining

Requirements:
– One or more of the following four strategies
are used to determine
• Entails roughing out AIS requirements:
a system for users to critique.
•When they see something on a screen, it’s easier to
• Ask users what they need
identify what they like and don’t like.
• Analyze
• Goesexisting
throughsystems
iterations of improving and reviewing
• with users
Examine untilsystem
existing users agree
use on their needs.
• Create a prototype

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 SYSTEMS ANALYSIS

• Documentation and Approval of User

Requirements:
– Detailed requirements for the new AIS should
be created and documented.
• How to produce the required features is determined
during the design phases of the SDLC.
• The requirements list should be supported by
sample input and output forms and charts that make
it easier to conceptualize.
• A nontechnical summary is often prepared for
management.

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 SYSTEMS ANALYSIS

• Once user requirements have been

determined and documented, the project
team:
– Meets with users.
– Explains the requirements.
– Obtains their agreement and approval.
• When an agreement is reached, user
management should sign off on the
requirements.
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 SYSTEMS ANALYSIS

• The project development team will

conduct the systems analysis in five steps
– Initial investigation
– Systems survey
– Feasibility study
– Information needs and systems requirements
– Systems analysis report

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 SYSTEMS ANALYSIS
• The last step in systems analysis is the systems
analysis report.
– Summarizes and documents the activities.
– Serves as a repository of data from which designers
can draw.
– Outlines:
• Goals and objectives of the new system.
• Scope of the project.
• How the new system fits into the company’s master plan.
• User processing requirements and information needs.
• Feasibility analysis.
• Recommendations for the new system.

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 SYSTEMS ANALYSIS

• A go-no-go decision is usually made three

times during systems analysis:
– During the initial investigation to determine
whether to go ahead with a systems survey.
– At the end of the feasibility study to determine
whether to proceed with the information
requirements step.
– At the completion of the analysis phase to
decide whether to proceed to the next phase
(conceptual design).
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 SYSTEMS ANALYSIS

• When systems analysis is completed, the

project can move on to:
– Conceptual design phase
– Physical design phase
– Implementation and conversion
– Operation and maintenance

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 SUMMARY
• You’ve learned about the five phases in the
systems development life cycle, with a particular
emphasis on systems analysis.
• You’ve learned who the players are in the
systems development process.
• You’ve learned about various techniques that
are used to plan the development of a system.
• You’ve reviewed some techniques for
determining system feasibility.
• You’ve learned about behavioral responses to
systems changes and how dysfunctional
behavior can be minimized.

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